Why many women don’t purchase life insurance

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March is Women’s History Month, a time to celebrate the accomplishments, strength and resilience of women past and present. It’s also a reminder that while women have made incredible strides, many still face financial challenges.

Despite remarkable strides in education, careers, and financial independence, women are still more likely than men to report higher levels of financial stress. LIMRA’s January 2025 Consumer Sentiment Study finds that four in 10 women experience high levels of stress about their household finances, 11 percentage points higher than men. That financial strain can make it even harder for women to prioritize long-term financial planning, including securing the life insurance coverage they need.

In recognition of Women’s History Month, we spoke with Karen Terry, assistant vice president of insurance product research at LIMRA, to explore why financial stress impacts women more deeply, how it affects life insurance ownership, and what can be done to help close the coverage gap.

A lightly edited version of Insure.com’s conversation with Terry follows.

Insure.com: Facing rising prices and an unsteady economy, LIMRA research shows increased financial worries among all Americans. Why are these worries more pronounced in women?

Terry: Despite the fact that women have made significant progress in achieving financial independence through greater educational achievements – the proportion of working women with college degrees has almost quadrupled since 1970 – and higher representation in the workforce, there remain income and wealth disparities. 

In 2023, a full-time working woman earned approximately 84 cents to every dollar a full-time working man earned. Compounded over time, this income disparity can have a significant impact on women’s overall wealth and influence their financial decisions.

Year after year, LIMRA research has revealed that women are more likely than men to express financial worries, such as paying monthly bills, saving for emergencies, and having enough money to retire comfortably. Nearly 1 in 3 women say they are very or extremely worried about being able to pay their monthly bills. Across the board, women express higher levels of stress about caregiving for children and family members, personal day-to-day demands, work-related issues, and their and their families’ well-being. Younger women – Gen Z and Millennials – are more likely to say these issues are creating high levels of stress in their lives. 

Insure.com: How does financial stress impact women’s life insurance ownership?

Terry: These immediate financial concerns may be a reason women have lower life insurance ownership. If women are worried about paying for household bills and taking care of their families’ day-to-day needs, there is little room to think about longer-term financial planning, like purchasing life insurance to protect their loved ones’ financial future. 

LIMRA research shows women are more likely than men to say they haven’t purchased the coverage they need because they believe it is too expensive (50% versus 45%). We often attribute this to a lack of knowledge about the actual cost of buying a policy — and that is likely part of it — but it also could reflect the fact that women, having less income and wealth, do not believe they can take on another financial bill, even if it would provide future financial protection for their loved ones.

Insure.com: You mention women may have misconceptions about the cost of life insurance. Do they not recognize the value of life insurance?

Terry: While the self-reported life insurance ownership gap between men and women was at its highest level in 2024, it doesn’t mean women don’t understand the value of life insurance. Last year, 45% of women — representing 56 million women — acknowledged they had a coverage gap, and 4 in 10 said they planned to buy coverage within the year.

That said, almost half of women (48%) say they haven’t purchased life insurance because they believe it’s too expensive, and more than a third (36%) say they have other financial priorities.  This is an opportunity for the industry to help women understand the important role life insurance can play in their overall financial well-being and the many ways a policy can help alleviate some of their financial concerns. Today, just a quarter of women are confident in their knowledge about life insurance, and only 1 in 10 women believe they understand the various lifetime benefits permanent life insurance can offer. 

Insure.com: What is the best way to dispel misconceptions and educate women about life insurance?

Terry: Misinformation is a big challenge in every aspect of our lives. Not surprisingly, misinformation about life insurance and finances can directly undermine efforts to help people make sound financial decisions, like owning life insurance. 

Today, it is not enough to rely on personal conversations with clients. Less than 4 in 10 women currently work with a financial professional. Websites and social media play a bigger role in how women seek information about financial products and services. Our research shows that 9 in 10 women say they use the internet to do research about life insurance, which means we need to ensure accurate, easy-to-access information is available. 

Life insurers and financial professionals must provide online tools (such as policy calculators) and educational resources (blogs, visual aids, etc.) that can help women better understand the different types of life insurance products as well as how these products would support their financial goals. Since a majority of women say they use social media to learn about financial topics, insurers and financial professionals must also supplement their websites with an active social media presence that can help educate women and provide a platform where they can ask their questions more directly.

At the end of the day, life insurance is about peace of mind — knowing the people you care about most will be protected, no matter what. For women juggling financial stress and daily responsibilities, it can be hard to think about adding one more thing to the list. But getting the right coverage doesn’t have to be complicated or expensive. Start by learning what you really need, ask questions, and explore your options. Whether it’s through online tools, trusted resources, or talking to a financial professional, taking that first step can make a big difference. And it’s a step toward feeling more confident and secure about your financial future.

Karen Terry

 

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Karen Terry leads the Individual Product Research team, developing and implementing LIMRA's research program for individual life, disability, long-term care and critical illness insurance products in the U.S. and Canada.